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COVER STORY
Islamic Banking: A Bright Future
-- Katuri Nageswara Rao
Islamic banking professes ethical principles in lending and prohibits payment and receipt of interest on
the ground that it misallocates resources and results in creation of black money and inflation. It favors
collective endeavors of the entrepreneurs, with banks acting as partners. This concept of banking also
encourages financing small borrowers. Islamic banking, therefore, is a relatively more superior and ethically more
correct banking, even though there are numerous challenges in its implementation.
© 2009 IUP. All Rights Reserved.
INTERNATIONAL BANKING
German Banks: Less is More
-- T Jyotsna
The fallout from the global credit and financial crisis has helped Germany to kick-off a long overdue round
of consolidation in the nation's fragmented banking business.
© 2009 IUP. All Rights Reserved.
STRATEGY
Non-formal Methods of Credit Appraisal
-- Rajendra Singh
Bankers have to return to basics of credit appraisal. With increasing credit risks, banks have to ensure
that loans are sanctioned to `safe' and profitable projects. For this they need to fine-tune their appraisal criteria.
A mix of both formal and non-formal credit appraisal techniques will go a long way to ensure perfection in
credit appraisal and ward off increasing default tendencies. While the formal methods have been often
discussed, this article explores the non formal methods that are also equally important, though being subjective.
© 2009 IUP. All Rights Reserved.
REGULATION
Convergence to IFRS: Issues for the Banking Sector
-- Prof. M Subramanyam
The issue of convergence with International Financial Reporting Standards (IFRS) has been
gaining considerable momentum in India after the announcement from the Institute of Chartered Accountants of
India that with effect from April 1, 2011 all listed and public sector entities should converge their reporting
systems with the IFRS. This article discusses the probable areas of impact due to the convergence and
the preparedness expected to efficiently handle the change.
© 2009 IUP. All Rights Reserved.
INVESTMENT BANKING
Understanding I-Bank's Fee Contracts in Mergers
and Acquisitions
-- Sumanta Dutta and Pankaj Baag
Mergers and acquisitions are one of the major businesses for investment banking firms. Investment banks
can add value to an acquisition by identifying appropriate acquisition targets and helping to value the
acquisition. However, there has also been a considerable criticism on the fees paid to these investment banks for
the services rendered. To understand the same it is important to analyze the fee structure.
© 2009 IUP. All Rights Reserved.
BANKING SERVICES
Private Placement Market and the Role of
Merchant Banks
-- Prof. C P Mall and Anand Singh
Although the Private Placement Market (PPM) in India offers convenience and flexibility to the issuers as
well as to the investors, this method of raising funds in the primary capital market has not been able to succeed
in maintaining its steady growth in India. This article assesses the Indian PPM and discusses among
other aspects, the significance and growth prospects of the PPM in India.
© 2009 IUP. All Rights Reserved.
TECHNOLOGY
Technology Initiatives by State Bank of India
-- A K Sohani
The State Bank of India is facing challenges from different players in the banking industry. With the help
of numerous technological initiatives, it is working to bring about organizational improvements in order
to withstand the competition. Though liberalization and adoption of IT have given the operational freedom to
the bank in conducting its day-to-day operations, at the same time, they have thrown up new challenges
and threats.
© 2009 IUP. All Rights Reserved.
PRODUCTS
Art of Factoring: A New Area of Credit Sales
-- Dr. Meenu Verma
Factoring is a financial transaction where a business sells its accounts receivables at a discount to a
factoring company. Factoring creates a positive cash flow for the companies. Owing to the numerous advantages
that this concept offers, banks and other factoring companies must gear themselves in this direction. However,
a strong legal framework is required for this service to grow in India. This article describes this new
concept to the readers.
© 2009 IUP. All Rights Reserved.
PRODUCTS
Reverse Mortgage Scheme: A Boon for Senior Citizens
-- Dr. G S Gireesh Kumar
Across the globe one of the chief concerns of the senior citizens is that they will outlive their savings and that
affects their retired life. The reverse mortgage facility serves as a financial lifeline in such a scenario.
Reverse mortgage scheme enables senior citizens to avail themselves of periodical payments from a lender against
the mortgage of their house while remaining as the owner and occupying the house. This article describes
this issue in detail.
© 2009 IUP. All Rights Reserved.
CASE STUDY
E-Delivery Channels in Banks: Customer Perception
-- Dr. R K Uppal and Pooja
Banking is undergoing a radical and rapid transformation all over the world due to the all-pervasive
influence of Information Technology (IT). This case study traces the present status of e-banking in India, visualizes
its prospects and looks at the chellenges in the tracks to be traversed. It concludes that in the scenario of
severe competition and escalating customer expectations, banks cannot remain lukewarm to IT and yet hope to
grow. The key to suvival is to provide value-added services using state-of-the-art IT.
© 2009 IUP. All Rights Reserved.
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